Funds News

Crescent Acquisition to buy fitness chain F45, merged firm to trade on Nasdaq

June 25 (Reuters) - Crescent Acquisition Corp, a special purpose acquisition firm, said it would buy Australian fitness chain F45 Training in a deal that values the combined company at $845 million, including debt.

F45, which counts actor Mark Wahlberg as one of its shareholders, has more than 1,900 franchises in 50 countries and is known for promoting group workouts without heavy equipment.

The combined company will trade on the Nasdaq following the closure of the deal, which is expected in the third quarter of 2020, and will retain the F45 name, Crescent said in a statement on Wednesday.

“F45’s high profit margins, exceptional franchisee economics and repeatable business model position it for continued rapid expansion,” Crescent executives said.

F45’s top management will stay on in their current positions, including Chief Executive Officer Adam Gilchrist, and Crescent will appoint two directors to the existing board, the statement said.

Credit Suisse is serving as financial and capital markets adviser, BofA Securities is serving as capital markets adviser and Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal adviser to Crescent.

Goldman Sachs & Co. LLC and J.P. Morgan are serving as financial advisers and Gibson Dunn & Crutcher LLP is serving as legal adviser to F45.

Crescent shares fell 7.3% overnight, amid a broader market drop. (Reporting by Nikhil Kurian Nainan in Bengaluru; Editing by Rashmi Aich)